OK SB1903

Creates the Oklahoma Home Service Contract Act to establish an independent legal framework for home service contracts, declaring them not to be insurance and exempt from the Insurance Code.

Requires home service contract providers to register with the Insurance Commissioner and pay an initial fee of $1,200 plus a fraud fee of $2,250, with renewal every three years; providers must also pay a 2% administrative fee on gross contract sales or elect an annual $3,000 flat fee.

Mandates providers maintain one of three financial security options: a 40% funded reserve account, a 5% security deposit (minimum $25,000), or a $25 million net worth; alternatively, providers may obtain 100% reimbursement insurance coverage from an AM Best B++ rated insurer.

Requires service contracts to clearly disclose in writing: provider information, total purchase price, covered merchandise and services, limitations and exclusions, cancellation terms, customer obligations, and claim procedures including toll-free numbers for emergency repairs.

Authorizes the Insurance Commissioner to examine providers, issue cease-and-desist orders, impose civil penalties up to $500 per violation (maximum $10,000 aggregate), and pursue injunctions for violations; provides hearing procedures for aggrieved parties.